Thinking of investing in property? Avoid buyers remorse and find out what ‘excellent’ tenants are look for.
With adversity comes opportunity, and as a result of COVID-19, the property market will more than likely offer some good value for smart buyers. Those who do have money to invest will be looking to take advantage of the situation.
If you are looking to invest in the coming months, the purpose of this blog is to encourage you to think carefully about your next purchase, so when the time comes, you can feel confident about your decision because you know you are ticking all of the right boxes.
So, how do you make the right decision when purchasing an investment property?
There are many things to consider when purchasing an investment property. Using an analytical approach, based on the financial factors, rather than considering your personal likes and dislikes, will surely help you in purchasing the best property. After all, investment isn’t about emotions; it’s about economics.
You can conduct your research online, based on the most recent sales, suburb statistics, and the rate of rental occupancy. Even though the information is abundant, and it is easy to access, Real Estate Professionals hold the most crucial information. They deal with leasing and managing rental properties every single day. Their advice is invaluable, and if shared without an agenda, it will lead to a wise purchase and a healthy return.
It is imperative to understand; the investment property is only one part of the equation. Your return on investment is going to be determined by the quality of tenant you attract. If you can tick all of the boxes, you will attract an ‘excellent’ tenant.
An ‘excellent’ tenant is someone who pays their rent on time, is respectful of the property, and has a long-term lease. Attracting and retaining a high-quality tenant is the key to your success as a landlord. Through first-hand experience, Property Managers know the kind of homes’ excellent’ tenants look for, and what properties they tend to avoid.
Here are 7 aspects of a property you should consider based on what we find ‘excellent’ tenants look for in a home:
1. Safety and Security
Everyone likes to feel safe and secure in a home, and this must be on the top of your list when selecting an investment property. Garages with automated roller doors, high fences, and security-coded gates are just some of the critical aspects of a home that will attract ‘excellent’ tenants. Keep in mind, many older homes have low-security features, and improving this situation may prove costly.
2. School Zone
Along with location, a high-quality tenant might consider the area’s school zone. For tenants with school-aged children, this can be a significant priority. Even if a tenant does not have children, many tenants view the quality of the school zone as an essential predictor of neighbourhood quality. Therefore, it is a factor that’s likely to be on any tenant’s radar who’d like a long-term home.
3. Low Maintenance
Beware. When you look at any property to purchase, it may appear to be low maintenance because it is neat and tidy. Consider how this may look without care for a few months – or consider the cost of having someone maintain the property as an addition to the rent. An ‘excellent’ tenant may not want to take on a property they think they will not be able to manage.
4. Pets Allowed
Many ‘excellent’ tenants own a pet, and they need to find a home for the whole family. If you choose a pristine property, they may not feel like a pet would be accepted. Consider a property that looks homely, and would also be the right home for a pet.
5. Outdoor Space
A private backyard or balcony is a must and may differentiate your property from a similar one down the street. If you can provide a small space to enjoy the sunshine and fresh air, you’ll be able to attract more tenants and possibly allow you to charge higher rent.
No one wants to walk far from their car when they arrive home. There may be shopping to carry, and this is certainly not convenient for a family with young children. If there is no car space, ask about permits and visit the home during the day as well as at night to see how much space is available.
7. Open Floor Plan and Storage
If the tenant cannot see how they will fit their ‘things’ in your home, they may not want to pay for extra storage. If the property you choose has a waterproof shed or attic, you will be ticking the ‘practical’ key aspect box. Open floor plans are also the most sought after property feature, so it would be worthwhile considering this in your decision as well.
As you can see, there are features to look out for. You may not end up ticking all of the boxes; however, the more you can tick, the easier it will be to find an ‘excellent’ long-term tenant.
If you have found this helpful and would like to find out SEVEN MORE ESSENTIAL ASPECTS to consider when buying an investment property, we at Besser & Co. can help.
We would be happy to share our knowledge to ensure your next investment becomes one of the best choices you have ever made.
Call Dion Besser on 0412 556 443 to discuss your next investment property purchase.